Air Products and Chemicals (APD) AI Stock Analysis

• Market Cap: $64.60B
• Dividend Yield: 2.47%
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): 42.2
• Beta (1Y): 0.79
• Revenue Growth: -1.09%
• EPS Growth: -37.71%
• Country: US
• Employees: 21,850
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Chemicals - Specialty
• EPS (TTM): 2.69
• Shares Outstanding: 222,544,220
• 10 Day Avg. Volume: 1,400,185
• 30 Day Avg. Volume: 1,207,125
• PEG Ratio: >-0.01
• Price to Book (P/B): 4.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.50
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 20.27
• Enterprise Value/Ebitda: 3.64
• 1Y Price Target: $323.69
• Price Target Upside: 11.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 63 Neutral
• Price Target: $299.00 ▲(3.00%Upside)

Air Products and Chemicals' overall score reflects strong profitability and positive technical momentum. However, high valuation, challenges from underperforming projects, and financial impacts from recent earnings guidance weigh on the score. The company's strategic refocus and financial management efforts provide a balanced outlook.

Positive Factors

Leadership Change

APD is now heading in the right direction under new leadership, indicating potential for future growth.

Strategic Vision

New management has unveiled a strategic vision targeting high single-digit EPS growth from 2026 to 2029, which indicates a positive long-term growth plan.

Negative Factors

Clean Hydrogen Projects

Increased uncertainty for clean hydrogen projects.

Earnings Guidance

The company lowered its full-year earnings guidance, which suggests a less optimistic outlook for its financial performance.

Project Write-Downs

The stock has moved to the lower end of the base case range due to investor positioning transition and unexpected project write downs.

Air Products and Chemicals Business Overview & Revenue Model

Company Description

Air Products and Chemicals, Inc. (APD) is a global leader in industrial gases and related equipment, serving a diverse range of industries such as energy, healthcare, and electronics. Founded in 1940 and headquartered in Allentown, Pennsylvania, the company provides essential gases like hydrogen, nitrogen, and oxygen, as well as chemicals and equipment essential for various industrial processes. Air Products is recognized for its innovative solutions in air separation, hydrogen for clean energy, and gasification technologies.

How the Company Makes Money

Air Products and Chemicals primarily generates revenue through the sale of industrial gases and related services. The company's key revenue streams include on-site gas production, merchant gases, and equipment sales. On-site gas production involves long-term contracts with large-scale industrial customers, where Air Products installs and operates gas production facilities directly at the customer's site. Merchant gases are sold to a broader market, including small and medium-sized enterprises, through a network of distribution channels. Additionally, Air Products earns revenue from its equipment and engineering services, providing customized gas processing systems and technologies. Strategic partnerships, such as joint ventures and collaborations with other industrial companies, also contribute significantly to its earnings by expanding its market reach and technological capabilities.

Air Products and Chemicals Financial Statement Overview

Summary

Air Products and Chemicals exhibits strong profitability with solid margins and efficient cash generation from operations. However, the decline in revenue and high capital expenditures resulting in negative free cash flow pose potential challenges. The balance sheet is well-managed, but increasing debt levels require monitoring to maintain financial stability.

Income Statement

Air Products and Chemicals shows a robust TTM gross profit margin of 32.25% and a net profit margin of 12.75%, indicating strong profitability. However, a revenue decline of 0.66% from the previous year suggests challenges in growing sales. The EBIT and EBITDA margins of 12.12% and 21.99% respectively, demonstrate effective cost management, although the margins have decreased compared to prior years, reflecting increased operational costs or reduced pricing power.

Balance Sheet

The company's debt-to-equity ratio of 0.98 is reasonable, indicating a balanced approach to leverage. A return on equity of 9.14% TTM suggests moderate efficiency in generating returns for shareholders. The equity ratio stands at 43.17%, reflecting a solid equity base relative to total assets. The balance sheet reflects adequate financial stability, though an increase in total debt over recent years could pose a future risk.

Cash Flow

The operating cash flow to net income ratio of 2.19 TTM is strong, highlighting efficient cash generation from operations. However, the negative free cash flow TTM, primarily due to high capital expenditures, is concerning for liquidity. The company needs to manage its investments carefully to avoid prolonged cash flow deficits.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	12.02B	12.10B	12.60B	12.70B	10.32B	8.86B
Gross Profit	3.84B	3.93B	3.77B	3.36B	3.14B	3.00B
EBITDA	3.58B	6.49B	4.42B	4.22B	3.97B	3.72B
Net Income	1.53B	3.83B	2.30B	2.26B	2.10B	1.89B
Balance Sheet
Total Assets	38.87B	39.57B	32.00B	27.19B	26.86B	25.17B
Cash, Cash Equivalents and Short-Term Investments	1.60B	2.98B	1.95B	3.30B	5.80B	6.36B
Total Debt	16.50B	15.01B	11.03B	8.33B	8.22B	8.31B
Total Liabilities	22.09B	20.90B	16.34B	13.49B	12.77B	12.73B
Stockholders Equity	14.70B	17.04B	14.31B	13.14B	13.54B	12.08B
Cash Flow
Free Cash Flow	-4.33B	-3.15B	-1.42B	303.70M	877.70M	755.70M
Operating Cash Flow	3.36B	3.65B	3.21B	3.23B	3.34B	3.26B
Investing Cash Flow	-6.11B	-4.92B	-5.92B	-3.86B	-2.73B	-3.56B
Financing Cash Flow	1.73B	2.62B	1.61B	-1.00B	-1.42B	3.28B

Air Products and Chemicals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 290.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APD, the sentiment is Positive. The current price of 290.3 is above the 20-day moving average (MA) of 278.73, above the 50-day MA of 273.84, and below the 200-day MA of 294.29, indicating a neutral trend. The MACD of 2.69 indicates Negative momentum. The RSI at 66.82 is Neutral, neither overbought nor oversold. The STOCH value of 88.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APD.

Air Products and Chemicals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIN	77 Outperform	$224.42B	34.60	17.20%	1.26%	0.78%	6.75%
SHW	72 Outperform	$89.04B	33.62	70.22%	0.89%	0.26%	12.82%
EMN	69 Neutral	$9.03B	9.96	16.16%	4.25%	2.78%	1.50%
DD	64 Neutral	$29.90B	40.24	0.06%	2.25%	4.51%	-121.68%
PPG	64 Neutral	$26.43B	19.72	18.47%	2.34%	-7.67%	-0.58%
APD	63 Neutral	$64.60B	42.19	10.45%	2.47%	-1.09%	-37.71%
Sector *	43 Neutral	AU$1.37B	-6.17	-40.62%	4.19%	-4.78%	-42.91%

Air Products and Chemicals Corporate Events

Air Products Issues $1.1B Notes and €500M Eurobonds

On June 9, 2025, Air Products and Chemicals, Inc. entered into underwriting agreements for the issuance and sale of $1.1 billion in U.S. Notes and €500 million in Eurobonds. The proceeds are intended for general corporate purposes and to repay commercial paper obligations, potentially strengthening the company’s financial position and market presence.

The most recent analyst rating on (APD) stock is a Buy with a $375.00 price target. To see the full list of analyst forecasts on Air Products and Chemicals stock, see the APD Stock Forecast page.